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How Black-Woman-Led Startups Have Fared Since 2020
- Staff Picks
- Apr 8
- 4 min read
In the immediate aftermath of 2020’s racial reckoning, venture funding for Black founders did see an uptick.
It started with a tragedy that shook the world—the murder of George Floyd in 2020. What followed was a groundswell of action, protest, and urgent reflection on racial inequity in nearly every American institution. In corporate boardrooms and venture capital firms alike, pledges were made: to fund, to support, to uplift Black communities.
At the center of these efforts stood a group often celebrated for their resilience but overlooked when checks were being written—Black women entrepreneurs.
In the months that followed, a wave of venture capital and grant initiatives emerged, specifically aimed at women and people of color. For once, the conversation was not just about inclusion; it was about investment. But five years later, what came of all those promises? Did the dollars flow? Did businesses thrive? Did we change the story?
This article is a check-in. A narrative glance at where Black-woman-led startups stand in 2025. We focus on the U.S., across industries—from healthcare to fashion—and examine the trajectory of funding, from seed rounds to unicorn valuations. We also explore the real-world impact of nonprofit grants and corporate philanthropy, asking not just who got the money, but what they’ve done with it.
A Wave of Funding and a Moment of Hope
Following the summer of 2020, Black founders experienced what some dubbed a "mini boom." According to Crunchbase News, U.S.-based Black-founded startups raised a record $4.9 billion in 2021—1.4% of the year’s total venture capital. While still far from equitable, it marked a significant increase from prior years.
Black women founders, often at the intersection of racial and gender bias, saw their best year ever. In the first half of 2021 alone, they raised $494 million—more than all of 2018 combined. The mood was cautiously optimistic. Perhaps, finally, the system was beginning to shift.
But as with many things tied to market cycles, the surge did not last. By 2023, funding to Black-founded startups dropped 86% from its 2021 peak, plummeting to just $0.7 billion. That regression outpaced the general market downturn and revealed what some suspected all along: the funding bump may have been more reaction than revolution.
The Founders Who Broke Through
Still, amid the data swings and shrinking check sizes, some founders made history. Their stories offer not just evidence of progress, but blueprints for future success.
Dr. Toyin Ajayi’s Cityblock Health raised a jaw-dropping $400 million in 2021, bringing high-quality healthcare to underserved urban communities.
In the nonprofit tech space, Resilia, led by Sevetri Wilson, raised $35 million to streamline operations for mission-driven organizations. Meanwhile, Dr. Iman Abuzeid's Incredible Health addressed the nursing shortage with tech—and became a billion-dollar business.
Then there are the quiet but powerful wins: Tanya Van Court’s Goalsetter, a savings and financial literacy platform for kids, closed a $15 million Series A. Denise Woodard’s allergen-free Partake Foods made it to Target shelves. Each of these founders proved that with access to capital, Black women can lead, scale, and succeed.
Who Stepped Up to Fund the Movement?
Much of this progress wouldn’t have been possible without the emergence of funds designed specifically for underrepresented founders. Fearless Fund led the charge, investing $26.5 million into 40 startups led by women of color. Their additional $3 million in grants reached hundreds of small-business owners—many of whom wouldn’t have otherwise gotten a shot.
Backstage Capital, founded by Arlan Hamilton, had long been betting on "underestimated" founders. While their checks were often small, their visibility and mentorship were game-changing. Collab Capital in Atlanta raised $50 million and crafted new financing models tailored for long-term sustainability, while Harlem Capital committed to backing 1,000 diverse founders over 20 years.
This wasn’t charity—it was strategy. These funds knew that Black women weren’t just symbols of resilience; they were undercapitalized innovators with massive market potential.
Grants That Made the Difference
Not all capital came in the form of equity. Corporate and philanthropic players also stepped in with grant programs designed to provide runway without the pressure of dilution.
American Express’s “100 for 100” initiative gave 100 Black women founders $25,000 grants along with a network of resources. Goldman Sachs’ One Million Black Women has deployed over $2.1 billion in investments, with tens of millions allocated to entrepreneurial initiatives.
These programs weren’t just feel-good press releases. They created momentum. They told Black women: your business matters. Your ideas are worth investing in. Programs from Google, Visa, and Comcast followed suit, offering grants, mentorship, and even advertising services.
So, Are Things Better Now?
In many ways, yes. Black-woman-led startups are more visible, better funded, and increasingly recognized as a powerful force in entrepreneurship. According to Harvard Business Review, Black women are more likely than white men to start a business. That’s not ambition—that’s a demographic trend.
But challenges remain. Despite the headway, Black women still receive less than 1% of total venture funding. Grant programs are often one-time windfalls. DEI initiatives are under attack in some political circles, and venture capital has returned to a conservative posture in a tightening economy.
Still, the story is shifting. With every exit, every Series A, and every grant awarded, the myth that Black women can’t build scalable businesses erodes a little more. What remains is truth—and proof.
Black women aren’t waiting for permission. They’re building the future, one pitch deck at a time.
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